Good morning, friends. We have a compact issue today, with developing stories from ADQ’s takeover bid of Aramex to Egypt’s Damietta port handler filing for a capital increase. But first, an update on Trump’s new set of tariffs and its impact on different players…
THE BIG LOGISTICS STORY- Another day, another set of tariffs: US President Donald Trump ordered a 25% tariff on all imports of steel and aluminum yesterday, with the new measures set to take effect on 4 March. The tariffs will particularly impact key US metal suppliers in Canada, Mexico, Brazil, Japan, the EU, South Korea, Vietnam, and Taiwan. Canada specifically will be hardly hit as it accounts for 79% of total imports of primary aluminum steel into the US.
Metal stocks rally in the US, fall elsewhere: US steel manufacturers saw their shares get a significant bump during Monday trading as much of the rest of the world’s steel manufacturers saw their share prices slip. The US’ largest steelmaker Nucor closed yesterday up 5.6%, while Cleveland-Cliffs saw gains of 18%, and Steel Dynamics (5%), Century Aluminum (10%), and US Steel (5%) all closed in the green yesterday.
The tariffs aren’t necessarily good news for US manufacturers, particularly those in industries reliant on imported steel and aluminum who will now face higher prices for the 25% of the country’s steel imports. “US manufacturers will have to wear higher prices as a result of these 25% tariffs,” Australian and New Zealand Bank’s Commodities Strategist Daniel Hynes told Reuters.
More incoming: The US government is also set to add reciprocal tariffs this week on all countries that tax US imports. “If they charge us, we charge them,” Trump told reporters aboard Air Force One.
The story made headlines in the international press: Reuters | Associated Press | Bloomberg | Financial Times | The New York Times | The Wall Street Journal | The Washington Post | CNBC | CNN | BBC | The Guardian
WATCH THIS SPACE-
#1- Suez Canal chief expects traffic recovery as early as next month: Egypt’s Suez Canal Authority (SCA) is expecting shipping traffic to gradually return to normal rates starting late March 2025, with projections for a full recovery by mid-year assuming the Gaza ceasefire holds, SCA boss Osama Rabie said during a phone-in on Egyptian TV (watch, runtime: 2:44).
Another vote for traffic resuming soon: “We see Red Sea traffic picking up late 1Q or early 2Q 2025,” Marine services company Zenith Enterprise CEO Amr Kataya told Al Arabiya.
The lay of the land: Nearly 32 ships currently pass through the Egyptian waterway per day, compared to an average of 75 in 2023 (watch, runtime: 2:49), which has led to a drop in revenues of almost 60%, with nearly USD 7 bn lost in FY 2024-2025.
REMEMBER- Trump’s calls to ethnically cleanse Gaza could derail hopes that traffic will return through the Red Sea, with shipping insiders worried that the Houthis may resume their attacks. So far, only a trickle of US- and UK-linked ships passing through the Red Sea safely after Yemen’s Houthis announced they would only target Israeli-linked vessels following the ceasefire agreement between Israel and Hamas.
#2- German firm Delivery Hero’s MENA unit — Talabat — is driving the company’s growth, generating USD 5.3 bn in sales in 9M 2024, Bloomberg reports. Proceeds from Talabat’s USD 2 bn IPO will help pay down some of Delivery Hero’s USD 3.8 bn in convertible bonds, CEO Niklas Östberg told Bloomberg. However, competition is heating up as China’s Meituan expands in the region — its app, Keeta, recently hit 1 mn weekly users, matching Talabat.
Asia is a tough nut to crack: Delivery Hero is struggling in Asia, where Meituan and US-based Coupang are cutting prices to dominate South Korea. Delivery Hero is pushing back by injecting EUR 100 mn into its South Korean operations to counter Coupang Eats' free delivery strategy. The company’s plans to offload units is facing obstacles, as Taiwanese regulators oppose its plans to sell Foodpanda to Uber Technologies. The company’s stock price has also declined by over 80% from pandemic-era highs.
#3- Iraq outlines new plans for Baghdad International Airport: Iraq’s Transport Ministry announced plans to enact 26 subprojects for the development of Baghdad International Airport over two phases, according to a statement. The project — funded largely by the International Finance Corporation (IFC) — will focus on rehabilitating the airport’s infrastructure and modernizing the air navigation and traffic management systems.
Some details: The first phase is set to launch nine projects funded by the ministry's operational budget and seven by the IFC’s investment budget, while the second phase will see the 10 remaining projects come to fruition, funded entirely by the IFC’s investment budget. No details on the timeline were disclosed.
ICYMI- Iraq announced last month that it was deliberating three options on offer from the IFC regarding the development of Baghdad International Airport.
Background: A project to refurbish Iraq’s Baghdad International Airport kicked off in February last year, with the IFC backing and overseeing the initiative. Iraq issued a two-stage public tender in July for a private partner to operate and develop Baghdad International Airport under a PPP contract, which aims “to modernize and rehabilitate the airport infrastructure, expand passenger and cargo terminal facilities.”
Other airports’ developments are advancing too: The Nasiriyah International Airport — currently under redevelopment with plans for inauguration this year — has received all navigation equipment from Spain’s Indra, whereas the Mosul airport — also set for re-opening this year — has also received most of its navigation and air management equipment.
MARKET WATCH-
#1- Oil prices went up on Tuesday on the heels of reports on declining Russian production, but the gains were partially offset by concerns about the global economic outlook in light of trade warring, Reuters reports. Brent crude futures increased by USD 0.24 to USD 76.11 a barrel, while the US West Texas Intermediate (WTI) ticked up USD 0.19 to USD 72.51 a barrel by 04.47 GMT.
ALSO- Opec’s Middle Eastern heavyweights have hiked their oil prices in a bid to capitalize on US sanctions that are squeezing Russian supply and the threat of tighter restrictions on Iran, Bloomberg reports. The price hikes — among the largest in years — come as refining margins in Asia improve and demand for alternative Middle Eastern crude rises. Iraq raised the price of its Basrah Medium and Basrah Heavy crude for Asian buyers to the highest since September 2022 in March. Crude prices from Abu Dhabi and Oman also saw significant increases for March supplies.
The rising prices are creating competition: The Middle East crude spot premium hit a two-year high in January, with main buyers including India and China’s oil refiners. However, this decision has prompted some Asian refiners to turn away from Middle Eastern crude and focus on shipments from the North Sea and Kazakhstan.
#2- Baltic index upward streak ends: The Baltic Exchange’s dry bulk sea freight index — which tracks rates for the capesize, panamax, and supramax vessel segments — slumped 6 points to 809 on Monday. The capesize fell by 30 points to 810, while the panamax index dropped 7 points to 1,028. The smaller supramax index rose by 17 points to 694.
#3- Rising supply concerns are pushing EU gas prices to surge, hitting their highest level in two years amid decreased storage due to low temperatures in the region, Bloomberg reports. Benchmark futures increased 4.1% to EUR 58 per megawatt hour on Monday, with the rate of inventory fullness settling at 49% compared to 67% in the same period in 2024. High levels of fuel consumption have caused concern that natural gas inventories – which have already fallen to their lowest levels since 2022 – will fall at an escalated pace.
DATA POINT-
Cargo handling volumes at Saudi ports increased 16.7% y-o-y in January to 27.6 mn tons, according to the Saudi Ports Authority (Mawani). Export containers were up 53.2% to 271.7k containers, while imported containers increased 39.6% y-o-y to 293.8k containers.
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CIRCLE YOUR CALENDAR-
Kenya will host Air Cargo Africa from Wednesday, 19 February to Friday, 21 February in Nairobi. The trade fair, focused on aviation in the logistics sector, offers an inclusive platform to showcase multimodal transport solutions across the continent. The event , slated to gather over 2k visitors from over 50 countries, will host over 60 exhibitors and brands who will exhibit the latest developments in airfreight.
The UAE will host Dubai Freight Camp from Thursday, 20 February to Saturday, 22 February in Dubai. The event looks to connect new partners and businesses in the freight forwarding industry. Global members from freight networks Pangea and Connecta are invited to partake in the conference.
The UAE is holding AD Ports Group Capital Markets Day on Monday, 24 February in Abu Dhabi. The full-day, in-person event will see investors, analysts, corporate and investment bankers and other securities market professionals gather to evaluate AD Port’s financial performance and the group’s strategy going forward. Group and cluster senior management, as well as other guest speakers, will visit flagship assets in Abu Dhabi.
The UAE will host the WCA Worldwide Conference from Tuesday, 25 February to Saturday, 1 March in Dubai. The event — set to bring together over 4.5k freight forwarders from 179 countries — will host several workshops and courses over one week.
Check out our full calendar at the bottom of this email for a comprehensive listing of upcoming news events and news triggers.




